Mike McGavick, CEO of XL Group plc (“XL”) (NYSE: XL) yesterday told Germany’s leading risk managers and key stakeholders that understanding the risks facing German companies tomorrow is critical to the insurance industry remaining relevant today and in the future. Speaking at the Deutscher Versicherungs-Schutzverband (DVS) Symposium, the annual commercial insurance event which brings together Germany’s key risk professionals representing some of the country’s most successful companies, Mr. McGavick said:
“The role of risk managers and that of the insurance industry has never been more challenging. Today the world is changing faster than ever before and risk is becoming riskier. If the commercial insurance industry is to remain relevant, we must establish our place in this changing world.”
Mr. McGavick continued: “It is the job of the risk manager and insurance industry to move to understand and anticipate these risks, and fast. We must innovate and be agile in our thinking if we are to meet the challenges of understanding future risks.”
Mr. McGavick also drew attention to some of the advancements being made particularly in respect of cyber risk and political risk. He said: “These coverages aren’t yet where they should be in terms of truly tackling the risks being faced by clients in these areas, but they show promise.”
“Collaboration is key”, he said, “risk managers, insurers and governments need to work together to establish the current risks and understand the future risks.
We don’t have the luxury of time, in this respect the insurance industry must change its mindset; in seeking to understand risk we tend to wait for long data sets to develop. The increasing rate of change means waiting is no longer an option.”
Concluding Mr. McGavick said: “Germany, as the world’s third largest exporter, has significant insurance purchasing power; insurers and those in the business of risk must work together to transform unpredictable challenges into well-defined solutions to meet the requirements of German businesses.”
He continued: “Helping companies to comprehend and mitigate the risks they face today and tomorrow frees them up to concentrate on their core business, their products, their markets and their customers. We have the ability and ultimately the responsibility to help move society forward.”
About XL Group plc
XL Group plc, through its subsidiaries, is a global insurance and reinsurance company providing property, casualty and specialty products to industrial, commercial and professional firms, insurance companies and other enterprises throughout the world.
XL is the company clients look to for answers to their most complex risks and to help move their world forward. Its principal offices are located at No.1 Hatch Street Upper, 4th Floor, Dublin 2, Ireland. To learn more, visit xlgroup.com
About XL’s Insurance Operations
XL Group plc’s insurance companies offer property, casualty, professional and specialty insurance products globally. Businesses that are moving the world forward choose XL as their partner. To learn more, visit xlgroup.com/insurance.
XL Group is the global brand used by XL Group plc’s insurance subsidiaries.
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